Potential event of default

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A circumstance which would be an event of default had an unexpired grace period expired. So, if it will be a failure to pay if miss a deadline and then don’t pay within an hour of you making a formal demand of me, the sequence is as follows:

• The point where you miss the original payment deadline, but before I have made demand: nothing.
• If you meet the payment after the deadline but before I demand it: nothing
• Once I have made the demand, if you have not yet met it, but nor has it yet expired: Potential event of default.
• Once the deadline passes, and you have not met it: Actual event of default.

See also

• No event of default or potential event of default